You see what I'm getting at though right sir?
I do not see what you're getting at.
It's easy to custom code the size etc and layout position within the article.
You can change the width and height. Layout position is just like any other HTML element, add style="" or custom CSS to your theme.
Also how about no blank spaces when it gets aligned?
No idea what you mean, can you send a link to where you have blank spaces? Keep in mind that the embed option is for you to share to your audience, they can then take that and post it on their own blog or Facebook, etc... You want this to be easy to do, adding options means they are less likely to even bother copying the embed. Anyone who wants such options will either have them already styled in their CSS of their web site or know how to add them to the iframe using the style="" tag.